Credit Swiss...größerer Verlust+Dividendenkürzun g

Credit Suisse First Boston, the securities unit, returned to profitability in the second quarter as investment banking chief John Mack cut staff. The unit had earnings of $61 million, still lower than a profit of $127 million in the year-earlier period. The unit expects 2002 savings of $1.8 billion, above the earlier target of $1 billion because of more workforce reductions.

Muehlemann bought Winterthur for 13.3 billion francs five years ago to cushion the bank against losses in other units. Instead, Credit Suisse has had to bolster its solvency ratio, a gauge of its ability to write new business. Winterthur posted a combined loss of 1.05 billion francs in the first half.

The bank said ``Winterthur's equity base declined considerably in the first half of 2002'' because of lower stock markets. At the end of June, the insurer ``exceeded the local statutory capital requirements in all of the countries in which it operates,'' Credit Suisse said.

Swiss Life

Credit Suisse wrote down another 192 billion francs in its investment in Swiss Life, the country's largest life insurer, during the second quarter. It had reduced the value of the undisclosed stake on its book by 154 million francs in the first quarter and by 400 million francs in the third quarter of 2001.

Credit Suisse Financial Services, which includes private banking, insurance and consumer banking, had a net loss of 297 million francs in the second quarter compared with net income of 1.1 billion francs.

The 52-year-old former McKinsey & Co. consultant said last month that he will relinquish the chairman's role next year after the company in 2001 had its first drop in annual profit since he became CEO in 1997. Investors complained he had too much power.

Investors also criticized Muehlemann for buying investment bank Donaldson, Lufkin & Jenrette Inc. at the peak of the stock market in 2000, for $13.4 billion. Credit Suisse shares have fallen by almost two-thirds since the acquisition.

The purchase led to ballooning costs at Credit Suisse First Boston. In July 2001, Muehlemann replaced the unit's CEO, Allen Wheat, with Mack, who has eliminated about 3,000 jobs and $1 billion in expenses.

UBS AG, Switzerland's largest bank and Credit Suisse's biggest rival, yesterday reported a 4 percent drop in second- quarter profit, a smaller decline than analysts predicted.

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